of rate cuts, we told you they still think there is better than 60% chance we see a second-rate cut. all of a sudden the odds after third one went up to 54%. don't ask. charles payne, right now. charles: neil, thank you very, very much appreciate it. good afternoon, i'm charles payne, this is "making money." breaking right now, everything is breaking. president trump announcing new tariffs for china. that took the steam completely out of amazing rally. capitol hill is deserted after the senate pass as spending bill. andy biggs is warning about the national debt. buckle up and much more. "making money" starts right now. ♪ charles: just moments ago president trump says that he will impose additional 10% tariff on $300 billion of chinese import. here is the president's tweet. during the talks the u.s. will

start on september 1st, putting small additional tariff on 10% of the remaining $300 billion of goods and products coming from china into our country. this does not include $250 billion already tariffed at 25%. joining us now, edward lawrence with the very latest. edward? reporter: the president could go up to 25% that was originally floated for that last $300 billion worth of goods. starting at 10% level, seeing if something can be worked out. president donald trump was briefed on how the talks went, face-to-face by u.s. trade representative robert lighthizer. clearly the president did not like what he heard. in one of his other tweets the president saying that china wanted to renet the deal that had basically already been done. the president has said in the past, that is not something he is willing to do. we'll have to see if talks in september will continue. they are scheduled to be happening in september again but september 1st the tariffs

would go into place according to the president. the two sides seem to have very difficult take what is happened in the meeting publicly. the chinese and the u.s. saying different things of the chinese saying the u.s. agreed huawei would come off the entity list. the chinese not mentioning anything about protecting intellectual property or technology theft or saying that they would buy more from farmers although they did indicate that agriculture purchases are in the process of the listen. >> translator: some chinese enterprises including state-owned, private ones made inquiries with u.s. suppliers on agricultural products like soybeans, cotton, sorghum. they have applied for exclusion of increased tariffs on these products. reporter: technology sales to huawei not coming off the epty list. but there are applications, 50 to get -- charles, president not

happy what he heard with the briefing. we're looking more tariffs going into place september 1st. charles: here to react to the president's comment, new tariffs on china, david dietze from point view wealth management, also jason rotman lido isle advisors. jason, let me start with you. out of left field. i thought wall street put this in the rear view mirror even when the delegation came back. no one now believes the deal will happen anytime soon, but this does change the dynamics. >> absolutely. we thought we were getting back together. robert lighthizer and mnuchin went back over there and things would be on a even keel. that is obviously not the case. a couple things to remember. one of course ultimately all the incentives in the world for both sides to come to a deal. that is what is going to make ultimately china great, that will make the united states great. second of course one tweet should not cause you to cast

aside your long-term goals. we like to roll up sleeves, look for quality merchandise people are making a mistake with right now. charles: i will come back to you on that. i think that is a critical point for investors in the audience. jason, we opened relatively flat. had a huge surge after disappointing economic data suggested in my mind that the fed will have to cut-rate again whether powell want to or not. we lost all of it. this is not the freefall we might have gotten a couple months. i'm shocked we're not down even more. what are your thoughts? >> as i wrote in my notes this morning to everyone i think the market, at least this morning, obviously when we were nicely in the green, they were reviewing, the market as a whole was reviewing powell's statement. the fact that quantitative tightening would be curtailed a few months earlier, which when you think about it, quite bullish, less tightening, equals more bullishness. a rate cut equals more bullishness.

the market basically has priced in this morning a fed policy error as you alluded to, charles, that with global, if you look at not only u.s. manufacturing data, which is at multiyear lows, but manufacturing data around the world, major countries, it is actually at multiyear lows as well. the market is saying pre-selloff the fed cannot just cut once and stop t has to be a many easing cycle. the market in the red because of the tweet and china news. the dow is not down 500 because the fed was, market sying this fed will be more doveish. charles: this is interesting thing, david, i bring it up to you, some people said yesterday, some observers says if powell does cut rates against this economic backdrop which for the most part is phenomenal. there are areas, worrisome areas but overall when you look at wages, jobs, gdp he is actually empower president trump to up the ante?

in other words some folks yesterday if powell were to cut rates, help the market go up which it didn't for other reasons, theoretically send market higher, a stronger stock market would embolden president tough to take a tougher stance with china. >> people say a lot of stuff. i don't think that is the appropriate way for the fed to approach its job. its job to react to conditions as they see them. charles: powell mentioned trade a lot more than any other time. i think irony, every time powell talked about trade, whether fomc q&a or anything else he always said impact so far has been dill minute must from the economy. it is more about anxiety than the economic impact. he kept tracking trade, i felt like was needling president trump, he talked a lot about it and then we get this tweet and action. >> he did cut rates in light after very strong economy. trade war, in the generations past have been a real war, it is job to bolster the economy.

that would teach anybody a lesson how they should or should not be handling policy. charles: jason, we're still trying to figure out the fed. we have the jobs report tomorrow. are you rooting for good news or bad news? because this morning until this china news, bad news was actually amazing news at least for stocks. >> good question. may we live in interesting times which we are right now at least financially speaking. i'm 100% rooting for good news, charles. if we get a 10-k, 20-k jobs report i would think there is a very low probability that the market will be green on bad news tomorrow. we actually need to see a good number to assuage the market, say, hey, you know the floor is not being removed from underneath the market economically speaking. so i would love to see a big number for the markets. charles: the roller-coaster continues. jason, thank you very much. i want to bring in arizona congressman andy biggs. thanks for joining us. the senate narrowly passed a

two-year budget deal. the debt ceiling will be gone. 23 republicans did vote against this measure. conservatives, many still balking at the fact we'll have a spike in non-defense spending and a debt ceiling will be gone until july of 2021. it sparked, i just want to get your thought on that? >> yeah, charles, good to be with you, first of all but i mean that significant number, almost half senate republicans voted against the bill with 2/3 of the house voted against the bill. that gives me some hope because the problem with this bill as you know we're going to add about $2 trillion, a little actually more than $2 trillion to both the structural deficit over the next two years and the national debt. this spending problem we have in washington, d.c. has got to go away. we have got to address the spending problem because that is the number one national security threat actually. charles: president trump though

tweeted today, listen you have got to do what you got to do. once he is reelected they will start to cut big time. it was a topic of discussion on a special we had yesterday. i want you to listen to a small clip of because i want to get your reaction on the predictment president trump may be in. neil cavuto and lou dobbs discussed it yesterday. >> you think he has done a good job on reining in spending, on reining in, i give him high marks on tax cuts and cutting regulations. >> you have to work this thing out with the president, neil. >> no, no. >> here is the reality. >> fact, fact, do you think this president has done anything to contain the deficit and the debt that have spiraled still from what levels he had from barack obama? >> uh-huh. i do. indeed. we are at -- >> what has he done to address it, lou? >> let's go through a couple issues. deregulation which has raised productivity which has raised economic growth. that is one. >> deficits and debt, has he

improved it. >> military, he has to protect the military. >> furthermore, you're looking at unemployment in this country at historic lows. by the way it is shared prosperity. it is not only shared prosperity, we are looking at record low unemployment for every minority group. >> i said that at the outset. >> i didn't intinterrupt me neil you have interrupted me twice. looking at unemployment rate closing a gap, between minorities and whites in this country which is the exact right direction. >> we know all that. what has changed. >> i don't know what you know. you asked me a question. i'm giving you an answer. >> will be able -- >> do you worry about that or not, that's fine say no. >> if you review, i'm the one who raised the issue. charles: congressman biggs, you're a big supporter of president trump, when he says we have to do something like this, you don't back him, how do you

reconcile yourself? >> i here is the way i reconcile it. i'm viewing the two main parties that want to increase spending in washington, d.c., isn't the president. it is the republicans and democrats in the congress. they want to continue spending. i think president trump's hands are tied somewhat because of the a party goes in there, we'll increase spending for military, but guess what we'll increase spending for domestic programs by buck 1/2 every buck. charles: pox on both houses. >> yeah. charles: i want to ask you from the action coming from the white house moments ago, president trump saying there will be additional 10% tariffs on $300 billion in goods and services that are not tariffed already. it is sending the market plunging, what are your thoughts? >> nobody likes to see tariffs but i will tell this much, we're dealing with an unfair competitor. china is not just an unfair competitor, they're attacking our electoral system, they steal our eye pe. they have unfair trade

practices. president trump is trying to bring them to the table to negotiate a fair deal and what's happening now china is backing away from a deal i think president trump thought he had cut with xi xinping and, with that being the case he has to use what sticks he has. that is stick here. i hope we don't get to it. i hope we don't get to it but certainly might. charles: september 1st is giving wall street hope. we are at lows of the session but could be a lot lower. congressman, always appreciate you coming on. >> good to be with you,. charles: stocks had been rallying just a day after jerome powell sent stocks plummeting when he indicated the fed would not embark on a rate cutting cycle. we'll talk about what the is coming ahead now it got heated on the stage, but it wasn't president trump but it was president obama's legacy. our panel will break it down

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charles: divisions between the democratic party on display this week. front-runner joe biden was unserious attack. [cheering] >> go easy on me, kid. >> i will go back to vice president biden, your plan doesn't cover everyone in

america. in 2019 in america, for a democrat to be running for president with a plan that does not cover everyone i think is without excuse. >> the secretary, we sat together in many meetings. i never heard him talk about any of this when he was the secretary. >> first of all, mr. vice president, looks like one ever us learned the lessons of the past an one of us hasn't. you invoke president obama more than anybody in this campaign. you can't do it when it is convenient and dodge it when it is not. >> mr. vice president there is saying in my community. you're dipping into the koolaid and you don't even know the flavor. charles: i'm joined by rnc spokeswoman liz harrington and fox news contributor doug schoen. doug, i thought it was very eventful. it was interesting the way they went about it. the moderators sicking them defense each other and fights on the stage. everyone took it to joe biden? >> i thought joe biden did pretty darn well. better than he did last time. i think he surprised some of the

pundits before this debate, by his come back from the attacks he took from kamala harris in the first debate i they will come out of this even though at the was attacked largely unscathed. charles: were you surprised they revealed the weakness in everyone's policy at one point revealed on the stage? from a republican point of view they gave all the talking point? >> apparently barack obama's dhs chief is spouting republican talking points saying we need to have a border. i do think biden performed better than he did the first time around, low bar, however i don't think he is coming out unscathed. he is coming out way farther to the left. now he is on the record saying joe biden administration there is no place for fossil fuels. that is so beyond extreme, he is going way down the path to the left. it is not going to be palatable. charles: i do feel he is going to have to answer some questions he was able to dodge last night

on deportations, you know on decriminalizing the border. he was able to skate around them in part because the moderators didn't push him although de blasio tried his best. >> i think that is true and in a multicandidate field it's a lot easier to dodge specific concerns than a much smaller field. the other point, the democratic primary electorate so far to the left, that he has to move away from the positions he has taken before on things like the crime bill and health care and even the border, to sound like a progressive which based on his former record he is not. charles: biden, i want to play some sound, because biden was attacked-as much as president trump. >> donald trump from charleston to baltimore to even the border is using the tired, old language of demagogues, of fear-mongers, of racists to try to divide our

country against itself. the we know who donald trump is, but in this election the question is who are we as a people? >> number one, we can no longer allow a white nationalist to be in the white house, number one. >> so the first thing that i am going to do when i'm president i will clorox the oval office. [laughter]. charles: you know, liz, in a strange way i feel like the democrats actually elevated president trump. i'll tell you why. each, none of them said all of us can beat president trump. they said it will take someone special, and i'm that special person to beat him. in a strange way, elevated president trump, despite those hint. >> right. i think over the course of both nights it is very clear that there is not a clear front-runner here, there is not someone that can take it to president trump and when you have a party that is now saying barack obama wasn't liberal enough, the guy who sent billions of dollars and pallets

of cash to iran, the guy who unilaterally rewrote immigration law, to give legal status to illegal immigrants, is not liberal enough in today's democratic party, that is so beyond extreme and to their own peril, no matter who gets the nomination at the end of the day, they will be so far to the left, we will get rid of your health care, private care, give it to illegal immigrants for free and throw free college on top of that. how will you pay for that? your taxes go through the roof that will not be palatable to the american people. >> liz makes fair points, if we get someone like joe biden i can tell you this move to the left now, he will move back to the center. charles: so bait and switch to democratic primary voters? >> it will abate and switch. see two other people on the campaign trail that have not been evidented so far, michelle and barack obama. that will be a very -- charles: something of an indictment of joe biden they have not stepped up on his behalf? >> i'm sure they would like him

to. most presidents stay out of primary elections. given the back and forth between trump and the obamas over the years, i am certain we'll see him visibly after nominee is declared. charles: after this is about over, one statement more or less summed it up, it came from our mayor, new york city mayor bill de blasio. take a listen. >> this has to be the party that is not afraid to say out loud we're going to tax the hell out of the wealthy. charles: so, again, we get back to war on the wealthy, war on successful people, war on folks who are the epitome of the american dream. >> yes. an attack on the american dream every way you look at it, attack on fossil fuels, lifeblood of this economy. taxes through the roof, de blasio says he wants to restructure society. meanwhile the economy is booming, manufacturing jobs are coming back. how is joe biden going to say he will bring those back when we're going to get rid of coal? it is so extreme. charles: we've got to wrap it up, i saw you were holding your

wallet during that segment. >> we all will be. >> i am one who believes that the democrats have to be moderate politically, fiscal policy, also not emphasize redistribution but emphasize growth. we didn't hear that for the last two nights. that is a big mistake. charles: right. >> i dare say a problem going forward. charles: liz, doug, thank you very much. >> thank you, charles. charles: before trump's tariff tweet stocks were actually soaring after economic data that came out may have already made powell's comments yesterday irrelevant. we'll explain. evidence of democrat hypocrisy, why something is only racist if donald trump says it. stay with us.

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community of baltimore, a drug infested area, where a lot of drugs we're talking about have already taken the lives of so many children. charles: folks, there you have it. only racist when the president says it. congressman elijah cummings caught red-handed after president trump brings that old video back into the spotlight. of course you know president used the sail language talking about baltimore. democrats and media went crazy of the was that outrage deflection from their own failures to make life better for america's inner-city youth and other folks. i want to bring in anna polina with us. anna, when the whole brouhaha began, i thought the outrage was outrageous because there are people suffering, it is not just in baltimore. it has gone on for decades. instead all that energy that was used to portray president trump as a racist for using the word

infested, rather than trying to find solutions. >> absolutely. they're focusing more on the president's skin color than on issues that need fixing. i'm sure you know, you're service member, many people i served with themselves served in the military are to escape the conditions, whether baltimore, chicago, east l.a. the fact of the matter baltimore is dangerous. when republicans and democrats are more focused on what the president is saying instead of addressing the issues, nothing is getting fixed. the only people suffering are the kids. not to go to rant too much i grew up in what people could consider the hood with my father and i grew up in a house where there was rodents, where there was cockroaches and bedbugs. i can say these kids, when they're experiencing this lifestyle, growing up in the gang terror tories, when the families are essentially destroyed with drugs, there they are separated with from their families. there is hip pock criminal is

with the dnc when they care about the kids, when they were not addressing issues in their own cities and choose it to make a racial issue when it is to no. charles: if there were republican mayors and governors of these states and cities, i did sign up to the air force at 17 years old so i could get off the block because i was or i would be on crack and murdered or something. that was explosion of crack epidemic. i went to funerals of many people that could have been great, right now are homeless. having said that, why don't we take this, demand from the people, demand from elijah cummingss folks like that, solutions? why don't we galvanize this moment in time, forget now all the other fingerpointing, name-calling, maybe let's help the folks that we're talking about? >> absolutely. i think that needs to be the focus but again the only reason

elijah cummings is really responding the way that he is he is embarrassed. a lot of people -- charles: okay, fine, it is -- >> they're representing people. and -- sorry. charles: it is fine, so what he is embarassed? so what? you know what? they have done a terrible job but how about one day saying, let's resolve to fix it? find out what's happening to the billions of dollars that pour into these communities, that somehow never seem to find the people that supposedly targeted. forget about embarassment, all that other stuff, let's fix it? >> absolutely. he doesn't want to accept responsibility for it. what happened to that money? i would be interested in it. the president pointed out a great point, where is billions of dollars pouring into baltimore. why does it look the way it does, helping children of their district instead turn it into the race baiting issue, get the american people to fight, not focus on issues they have failed american people at addressing.

charles: thank you very much. always appreciate it. >> thank you. charles: stocks are down triple digits after president trump announcing more tariffs on china, taking the steam out of a very nice rally. a new data point came out that had investors thinking that the fed at this point they have no choice but to keep cutting. we'll explain that when we come back. jardiance asks: while managing your type 2 diabetes- why think about your heart? lower a1c helps, but type 2 diabetes still increases my risk of a fatal cardiovascular event. and that's why there's jardiance- the first type 2 diabetes pill that offers a lifesaving cardiovascular benefit for adults who also have known heart disease. it can significantly reduce my risk of dying from a cardiovascular event. and it lowers my a1c, with diet and exercise. jardiance can cause serious side effects including dehydration, genital yeast or urinary tract infections, and sudden kidney problems. ketoacidosis is a serious side effect that may be fatal.

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charles: stocks near session lows after president trump says the united states will go ahead and impose additional 10% tariffs on china, this as the president is expressing disappointment with federal reserve chairman jerome powell emphasizing that the quarter point rate cut was not part of a rate cutting cycle. he called it a mid-cycle cut. did the fed not cut rates enough as the president suggests or plink by cutting them at all because people say the economy is good after all? i want to bring in university of maryland economist, peter morici. you have strong opinions on them. they could have been 25%. they're going to be 10%. president trump not happy that china didn't live up to what most people thought low-hanging

fruit, buy soybeans and stop fentanyl? >> they should have gone to 25% after walking away from the table last time. certainly dot 10%, but do the 25. gradualism doesn't work. this is not like fighting a war, you don't ratchet everything up a little at a time. you throw everything you got at them. charles: to your point, china already admitted that the tariff battle cost them 2 million industrials jobs. i don't know if, do you think the idea from the administration's point of view hey we're not looking to destroy china, we want them to get them to play fair? >> i think there is a miscalculation here on the part of the doves inside of the administration, maybe mnuchin and his allies, that this really isn't that big of a problem, that it can be handled through next. in reality we're asking the chinese to change their economic system. they don't want to do that. and they feel they can wait trump out, get past the election

and maybe a democrat will be in there. and, at the level of pressure we have applied they can do that. the economy has problems in china but it is not so bad that they have to panic. remember, this requires an absolute religious conversion on the part of president xi when it comes how the economy should be run. i think you have to hit him across the head with the largest baseball bat you can find. in addition to the 25% tariffs, i would take additional measures against huawei to the extent that we can. for example, you know, applying sanctions to banks that do business with them. prohibiting banks to do business with them, things of that nature. bring in the financial sanctions aspect of things. even start to apply those more to the the general economy. charles: it is ironic, peter, as you're stating this president trump's critics, traditional stage craft, i.e., diploma sy would have worked. you say president trump has the

right thing in mind but should go even harder? >> absolutely, both bush and obama tried traditional diplomacy with china, and it didn't work. this is example, whatever mr. trump does must be wrong. i would point out to you, that hillary clinton ran on 25% tariff. mitt romney ran on a 25% tariff. mr. obama when he wanted to be president talked about taking tough measures with regard to china, like everything else he refused to cross the red line. i'm starting to wonder does donald trump really have the stomach to do what is necessary here? this reminds me a lot of calling back the retaliatory strike with regard to the drone. he doesn't seem to want to deliver the knockout punch. he seems to think he can buddy up to president xi and get a deal. president xi is not the kind of guy he can convert that way. charles: real quick, we have less than a minute. how does this change the dynamics in your mind with respect to the federal federal reserve. after the manufacturing data,

prices paid went into deflationary death spiral felt like they would have to cut rates anyway? >> you recall talking points i sent to you, before the segment, before we cut the tariff cut and announcement that the quarter point wouldn't have much traction. this only redoubles that argument. we have to have at least a half a point now. trump ought to do what it takes, and federal reserve should support him by cutting rates. charles: they may have to even if jay powell doesn't want to. peter, love your insights. >> take care. charles: president trump's tariff tweet, coming up next we'll head to the floor of the new york stock exchange to find out how the traders are handling this as we're awash in a sea of red. we'll be right back. ♪ your daily dashboard from fidelity. a visual snapshot of your investments. key portfolio events.

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charles: stocks falling after president trump says he will impose an additional 10% tariff on $300 billion of chinese imports. deirdre bolton is on the floor of the new york stock exchange with more. deirdre? >> hey, charles. i have to point out the dow. if you look at the intraday at its highest point the average was up 311 points. if you look now, i'm looking at the big board here, down 274. our viewers can see it as well. talk about just a reversal of trends. prior to this event the focus was on the possibility or at least the chatter that the fed might cut rates, particularly in september. talking about the fed funds futures going from a 53% chance after that ism manufacturing miss to a 61% chance. all of that got wiped out. i want to show you some stocks that are on the move, charles, and not surprisingly, these are ones that are particularly linked to trade. the first two i looked at, caterpillar and deere, of course two bellwethers for global trade and you can see those are

heading lower and then i was looking at some of the consumer-related companies, ones that have huge businesses, a lot of revenue coming from china. if you look at nike for example, apple, those really fell hard as well. we're seeing these overall patterns. i also want to tell you something that will not surprise you at all, charles, as far as the pattern, stocks that were doing well as groups, so prior to the president's tweets and after completely different trading story. so prior to those tweets you really had a lot of strength coming from technology, coming from consumer staples, consumer discretionary. if you look right now it is pretty much all defensive. if you look at s&p 500, utilities, real estate and staples are still holding on to some of the gains. the ones losing the most industrials. not a surprise. financials as well. charles, back to you. charles: before i let you go, deirdre, it is interesting, we do have three components up, staples, real estate, utilities, all safe havens of sorts but does it say something, have folks down there mentioned to you, money leaves one sector

goes in another sector, that there are still some folks committed to being in the market even if means hiding out in utility stocks for a moment? >> it's a bit tongue in cheek, i spoke to one trader who said, okay, we'll wait for next week when the president takes back this threat on the chinese tariffs because as we know, they don't go into effect until september 1st. so he is like, yeah, basically he is still in the market. just juggling which sectors he is in, charles. >> you know what? there is a lot of truth to that, right? otherwise i think we would be down a lot more. thank you, deirdre. not like we're notdown a lot. the dow made a 600 point reversal, up 300, down 300, since president trump put out the tariff threat. what the tariff fight could mean for national security. we will have national security analyst walid phares. he will weigh in next. ♪

charles: president trump says the united states will impose a decisional 10% tariffs on the $300 billion of chinese import that are not tariffed yet. joining me fox national security analyst walid phares. you know, walid, really interesting, when the delegation came back, both sides, united states puta communique out that the talks were constructive. there was nothing about huawei. we know president trump is upset because they have not lived up to the lowest anticipated promises they made. how does this change our dynamics particularly on the national security front? >> many areas are affected. charles, let me ask you, are we

here in new york and washington united how to deal with china? that is a segment by itself. our issue with china is not comparable to anything else, either iran, north korea, or russia because china is competing with us on all the levels. the tariff battle is one by itself. then china geopolitics, south asia, south china sea, africa, elsewhere. of course china can become an ally of our foes, such as buying more iran oil if they can, if they can break that measure, having with them, with russia. china is becoming the main competitor we have in the international scene now. neil: charles: no doubt about that. they have pretty their presence around in part to debt diplomacy with the marco polo silk road thing, that lured a lot of our european allies. some may be picking chinese money over the longstanding friendship with america. it is all part and parcel to

your point that they want to be the preeminent power in the world. they want to be what maersk is right now. financially, economically, and military right? >> they are ruled by one communist party. they forget sometimes that they have a lot of problems inside of china. should it be the territorial problems, the ethnic problems, they have an issue with taiwan and linked to north korea. of course they have this thing they are not even expecting. their own society by getting all these goodies, all this technology at one point in time will refuse the older generation. china within the ten days, 10 years to come may find a lot of problems in its domestic politics as well. charles: we know about their success and they're minting millionaires but we loss know there are hundreds of millions of folks who still have not joined in the economic revolution. those who have, to your point, they want democracy, want independence. our biggest allies over there would be the independent

business community, wouldn't it? >> that would start there. this is where all reforms and revolutions would start. what is happening in hong kong by the way, if you focus a little bit on the inner structure of that movement, it may reach china. the problems the chinese leadership have may not be in new york and washington t may be in hong kong, shanghai, other places as well. charles: let's hope so, let's hope so, just for humanity's sake. walid, always appreciate your conversations. thank you very much. >> thank you for having me. charles: folks, here is how you can look at this market. we opened weak. we ran up big time, up 300 points. we collapsed down 300 points. now we're only down 200 points. maybe the fed will play a role in this after the all. we'll hash it out as we go into the final hour of trading. we'll be right back.

>> we've got breaking news right now on the antitrust probe facebook doug jones is reporting that the ftc is looking at the social media giant acquisition to see if there was a plot to buy before they can become competitors. facebook disclose investigation in its earnings last week but provided little details. facebook has not commented on the latest of altman. we are heading into the final hour of trading, we are at the low point of the day but we are down and all of this started with president trump treated about posing more to paris on china. the market is down three sectors out of 11 sectors. quickly before we get to the china thing. i want to ask on facebook, isn't it a job of a business to buy up a would be rival in the infancy stage?

i never knew that that was illegal. >> absolutely. just because the company has them few missteps, doesn't mean you be able to come in there and everything they've done. they built a great business, instagram, of whatsapp. this is getting totally unreasonable. >> but the stock is not getting that much humored on facebook. >> they might think that part of investigation as much about nothing. shane helmeted trade a lot and i'm wondering if you put himself in a box because now with additional tariffs, they was confused before in one of the recency cut rates, he would have to cut rates a lot more. >> absolutely. this is why a lot of people say, why do cut rates. because of the concerned about trade wars. you have to look at the legitimate long-term person under purpose in the street fight. he needs to immunize the economy a little bit that we're seeing today. and you can see now, the chance for another rate cut in

september has gone up dramatically. >> this morning, we were a little bit lower at trading in the manufacturing number came out, it was amiss but inside the mist i saw something that i thought was revocable. prices paid have plunged dramatically. you talk about deflation, there are parts of this economy that we should be concerned about including low inflation don't you think? >> absolutely. for chile the consumer makes up about 70% of the economy, we've got the lowest appointment about 50 years, strong consumer spending. but absolutely, real estate ups manufacturing is down in the dumps and getting worse. those are some of the best paying jobs. that's one of the reasons the federal reserve is worried. >> mining lost jobs, we see the oil sector, a permian basin talk down 20% so we may have some other issues manufacturing, mining and those types of

things. i think it sort of gets overlooked over because of how big and powerful protest his tweeter. >> absolutely, one thing not well recognized is a couple ways to slow the economy, one entire race and the other thing is the u.s. dollar. -- >> exactly. if the delegates stronger, that pushes down commodity prices and make sure exports, services and goods that much tougher. that's what have to stay digital in. >> you as a professional money manager, i know you're not picking. >> these are the days when you can actually add value because you take out your wish list. those companies that even increasing dividends and earnings for five, ten, 15, 20 years say they are being told off and picking away at them. if you don't think stocks are cheap now, at least look at bombs were the ten year treasury has a 1.8 handle, the lowest

yield in three years. >> stocks are much more attractive. >> so your bonds and buy stocks. i will get reaction from trump advisor peter navarro. dow is up 239 points. i know the last hour will be another crazy one. >> it so interesting, stuart showed a nice move and then you kind of got the news. [laughter] that's what everybody has to just plant it right here on fox business. don't change the channel. breaking news, a trump tweet is still sinking the market. look at the set up version of what happened. the president to valley to impose tariffs on the $300 million of chinese import that had up until now and escaped his tariff raft. the tweet coming